Strain IC1270 of Enterobacter agglomerans has been previously described as a producer of a complex of chitinolytic enzymes and as an antagonist of many fungal phytopathogens [Chernin et al. (1995) Appl. Env. Microbiol. 61:1720-1726]. Here we show that this strain also produces an antibiotic that was purified by TLC and HPLC and identified by UV, IR, MS, and NMR analyses as pyrrolnitrin [3-chloro-4-(2'-nitro-3'-chlorophenyl)pyrrole]. The purified antibiotic is efficient against many phytopathogenic bacteria and fungi in vitro. This is the first piece of evidence showing that pyrrolnitrin can be produced by bacteria other than Pseudomonas and that one bacterial strain can simultaneously produce chitinolytic enzymes and pyrrolnitrin. The possible role of a combination of chitinases and pyrrolnitrin in antagonism is discussed.